hard · Volume Profile Analysis trading-strategies
A profile trader examines ES and identifies a Naked POC (an unvisited prior-session POC) at 5,540, while the current session is trading at 5,580. The session profile is b-shaped, with heavy volume clustered near the session high at 5,585.
Which scenario BEST supports a mean-reversion fade targeting the Naked POC?
- Price opens the next session within the current day's value area and immediately breaks to new highs.
- The next session builds equal TPO distribution above 5,585, forming new accepted value above the b-shape.
- The b-shaped profile's excess low is penetrated, suggesting short-term buyers are trapped and the Naked POC at 5,540 is the next major reference below.
- Naked POCs are only relevant as targets when they occur within the current week's composite profile.
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